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stich3 [128]
3 years ago
13

The White Corporation has a capital structure of 60 percent common equity, 10 percent preferred stock, and 30 percent debt. This

capital structure is believed to be optimal. To finance expansion plans over the coming year, the firm expects to have $40 million in retained earnings available. The cost of retained earnings is 18 percent. Additional common equity can be obtained by selling new common stock at a cost of 19.6 percent. Preferred stock can be sold at a cost of 15 percent. $25 million in secured bonds can be sold at a pretax cost of 14 percent. Beyond $25 million, the firm would have to sell unsecured bonds (debentures) at a pretax cost of 15 percent. The firm's marginal tax rate is 40 percent. What is the firm's highest weighted cost of capital?
Business
1 answer:
Elan Coil [88]3 years ago
4 0

Answer:

with only one chain and one pendant per necklace.write an expression that shows how much it will cost ronnie to

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You sold short JCP stock at $80 per share. Your losses could be minimized by placing a __________. a. limit-sell order b. limit-
san4es73 [151]

Answer:

The correct answer is letter "D": stop-buy order.

Explanation:

A stop-buy order is an order to purchase a stock at a particular price above its current market price. By placing a stop-buy order, the investor sets the price at which he will buy the stock in advance, thus eliminating the risk of missing the price point, the opportunity to buy a stock with good returns, or covering a short position at a reasonable loss instead of allowing the negative trade balance to rise.

So, <em>setting a stop-buy order will help the trader exit the transaction at a specific price to cover losses of a short position at a reasonable risk rate.</em>

3 0
3 years ago
The skillful supply chain manager declared she would not only disaggregate cycle inventory, but she would also aggregate safety
Elena-2011 [213]

Answer:

a. high value and high demand.

Explanation:

Since the skillful supply chain manager declared she would not only disaggregate cycle inventory, but she would also aggregate safety inventory and use an inexpensive mode of transportation for replenishing cycle inventory and fast mode when using safety inventory for her product that had high value and high demand.

Generally, when dealing with the transportation of goods that has high value and high demand, it is necessary and important that manufacturers or suppliers use the fast mode in order to meet up with their consumer's increasing demand. Simply stated, an increase in the demand for goods and services should be met with an increased supply, so as to reach equilibrium.

For the safety inventory, which are extra level of goods carried for the purpose of mitigating consumer demand that exceeds the amount forecasted by the manufacturer or supplier in a given period of time.

She decided, she would use a fast mode of transportation for safety inventory of goods with high value and high demand.

The replenishing cycle inventory involves the process of restocking or resupplying a retailer and distributor, when they place a replenishment order.

3 0
3 years ago
An increase in the price of gasoline will
Brums [2.3K]

Answer:

Shift the gasoline supply curve to the right.

Explanation:

in economy , A shift to the right in supply curves indicates that the supply of the product  increased, a shift to the left indicates that the supply of the product decreased.

When the price of gasoline increases, the amount of profit that the sellers can obtain by selling the product also increased.  This encouraged them to supply more of that product in the market.

4 0
3 years ago
The ________ market is where securities are initially issued and the ________ market is where pre-owned securities (not new issu
Lubov Fominskaja [6]

Answer: Option(a) is correct.

Explanation:

Correct option: Primary; secondary

Primary market is a market in which new stocks and securities are issued for the first time. Firms are selling their shares and bonds for the first time to the public. For example; IPO (Initial Public Offering).

Secondary market is a market in which buying and selling of already owned securities takes place. In this type of market investors trade with each other rather than with issuing firm.

4 0
3 years ago
River corp's total assets at the end of last year were $390,000 and its net income was $32,750. what was its return on total ass
Feliz [49]

10.23%

return on total assets of River corp who's total assets at the end of last year were $390,000 and its net income was $32,750 was 10.23%

<h3>What was the return on total assets?</h3>

This can be found by the formula:

= Net income / Total assets x 100%

This then on substitution gives:

= 32,750 / 320,000 x 100%

= 10.23%

Hence, the return was 10.23%.

<h3>What is return on total assets?</h3>

The ratio of a company's profits before interest and taxes (EBIT) to its total net assets is called return on total assets (ROTA).

<h3>What is meant by return on asset?</h3>
  • The return on assets (ROA), sometimes known as the return on total assets, is a metric for gauging how much money a company makes off of its capital.
  • This profitability ratio illustrates the rate of growth in profits produced by an organization's assets.

<h3>What Makes a Strong ROA? </h3>
  • Typically, a ROA of 5% or above is seen as good; a ROA of 20% or higher is regarded as great.
  • In general, a corporation is more effective at making profits if its ROA is higher.
  • However, the ROA of any one company must be viewed in the context of its rivals in the same sector and industry.

To learn more about return on total assets visit:

brainly.com/question/14969411

$SPJ4

8 0
2 years ago
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